Phu Quoc Island property to shine

Phu Quoc Island’s investment and development management board has announced that as at the third quarter 200 projects were registered on the island with total capital of VND168 trillion ($8 billion).

Vingroup is the largest investor, with VND9 trillion ($405 million), followed by the Sun Group with VND8.6 trillion ($387 million) and BIM Group, Milton Group, and CEO Group.

Ms. Do Thu Hang, Head of the Savills Hanoi Research Department, told VET that Phu Quoc Island’s property market has great potential, especially coastal villas, because the island is still in the early stages of development. “The supply of real estate on the island will increase strongly in the future,” she added.

CBRE, meanwhile, also recognizes that Phu Quoc has among the best potential for development in Vietnam at the moment. Abundant land sources, beautiful and pristine beaches, a warm year-round climate and few storms make it suitable for the development of hotels, villas, and resorts, including casinos, as well as medical tourism or simply recreation.

As a special economic zone Phu Quoc offers many special incentives, such as VAT exemptions for passengers at Phu Quoc Airport, a 10 per cent reduction on corporate income tax rates, and visa exemptions for international tourists of up to 30 days. Infrastructure is being completed quickly, such as the airport, which had investment capital of VND3 trillion ($135 million), and a road network with total capital of VND5.8 trillion ($261 million).

The international passenger port started in April, with total investment of VND1.6 trillion ($72 million) and the capacity to handle ships of 5,000-6,000 DWT, while the electricity grid has received investment of nearly VND2.4 trillion ($108 million).

According to the Vietnam National Administration of Tourism, 400,000 tourists visited Phu Quoc in 2013 and in the first nine months of this year had reached 1.2 million. Experts predict that numbers will continue to increase at a fast pace, especially when the projects of the abovementioned groups are completed and opened.